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Topic # 8403 27-Jun-2006 15:14
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There you have it... another step.

http://www.nzherald.co.nz/section/story.cfm?c_id=1&ObjectID=10388566

Not much detail yet, released at 3.05pm


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Juha
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  Reply # 39813 27-Jun-2006 15:19
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We heard about it earlier today - it was on the cards, but so soon after the new regulation was introduced? Must've been the Amendment to the Telco Act Bill that the government tabled. Got the full release from Telecom on my blog.

Looks like a BT-style separation, which to be honest can only be good.




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  Reply # 39814 27-Jun-2006 15:30
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I hope this will not repeat of the poor power corp split we had from years ago... i still haven't see the real benefit of the power corp split into wholesaler and retailers as the power prices are still pretty high...




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  Reply # 39820 27-Jun-2006 15:45
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It ws also in the dominion this morning, and reported on http://computerworld.co.nz/
Will be following this very closely




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Reply # 39821 27-Jun-2006 15:46
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Definition of confusion ~

Genesis Energy is my retailer (they send the bill)
United Networks is my lines company (they turn off my hot water)
NGC owns my power meter (I don't know what they do)

Before deregulation ~
MED ~ sent the bill and owned the lines and the power meter.




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  Reply # 39822 27-Jun-2006 15:47
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Yea thought the post may have been a littlebehind but a quick check didnt see any other posts.

Very interested to see how this goes, I think & hope it will be a good thing, and based on the Exec trips etc to BT Telecom who successfully did it a little while back hopefully the execs managed to garner some useful tips etc to make it as smooth as possible



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  Reply # 39823 27-Jun-2006 15:48
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Yeah, I really hope Telecom won't do the separation Max Bradford stylee.

What's going to happen to the mobile bit? Will there be a wholesale division there too?




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  Reply # 39825 27-Jun-2006 15:58
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juha: Yeah, I really hope Telecom won't do the separation Max Bradford stylee.

What's going to happen to the mobile bit? Will there be a wholesale division there too?


I think Telecom will not at this point (unless threatend further) look at thier mobile service...
They are just pre-empting the Gov so they can get the best deal for thier shareholders and thier profits, which is understandable, so to avoid harsher changes forced by the Gov which are, or at least, were, looking likely.

Also they have a commerce commision buffer in Vodafone




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  Reply # 39827 27-Jun-2006 16:16
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I can't say if this is a great move for anybody unless it is pulled of flawlessly.

BT seemed to have done it well and we must hope the same will happen here. You can look at what happened in the USA. AT&T was split into 7 and now one of thos spinoffs has brought up all the others including the parent, one deal needs final approval from the FTC but soon enough it will all be back to one AT&T.


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  Reply # 39829 27-Jun-2006 16:20
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bradstewart:

I can't say if this is a great move for anybody unless it is pulled of flawlessly.

BT seemed to have done it well and we must hope the same will happen here. You can look at what happened in the USA. AT&T was split into 7 and now one of thos spinoffs has brought up all the others including the parent, one deal needs final approval from the FTC but soon enough it will all be back to one AT&T.



Things change - the telco industry isn't the same now as it was when AT&T was split up. Also, this is Telecom separating wholesale/retail voluntarily (albeit under pressure from regulation) - wasn't AT&T split by the US government?

Was AT&T split into wholesale/retail operations? Don't think the Baby Bells operate like that, but could be wrong.

Also note that Telecom will still own the wholesale division.




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  Reply # 39831 27-Jun-2006 16:25
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juha:
bradstewart:

I can't say if this is a great move for anybody unless it is pulled of flawlessly.

BT seemed to have done it well and we must hope the same will happen here. You can look at what happened in the USA. AT&T was split into 7 and now one of thos spinoffs has brought up all the others including the parent, one deal needs final approval from the FTC but soon enough it will all be back to one AT&T.



Things change - the telco industry isn't the same now as it was when AT&T was split up. Also, this is Telecom separating wholesale/retail voluntarily (albeit under pressure from regulation) - wasn't AT&T split by the US government?

Was AT&T split into wholesale/retail operations? Don't think the Baby Bells operate like that, but could be wrong.

Also note that Telecom will still own the wholesale division.

AT&T was split into regional carriers who could only provide short distance calling services, international was serviced differently, quite a mess.

I didnt realise Telecom would still own their wholesale division. That makes it a whole different thing.

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  Reply # 39834 27-Jun-2006 16:33
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Years ago there was an internal split into Network Operations and Marketing and much time was spent deciding whose budget would pay. A lot of Networks was handed over to Alcatel and apparently who's going to pay still occupies a lot of time :-)
Still, so long as everyone pays the same honour will be satisfied, damn the efficiency.

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Reply # 39836 27-Jun-2006 16:48
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juha: Also, this is Telecom separating wholesale/retail voluntarily (albeit under pressure from regulation)


More like under pressure from a wave of the big Labour stick...'you will be fined $1M if you don't conform...'

Nice, if I was being threatened with a $1M fine I think I would voluntarily microchip my dog... I mean separate the business.

Just think of all the tax payers money Telecom have just saved by voluntarily doing something that Labour would have eventually forced them to do through draconian regulation, penalties and rigorous auditing. Telecom have done the tax payer a favour!




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  Reply # 40002 28-Jun-2006 19:58

Just think of all the tax payers money Telecom have just saved by voluntarily doing something that Labour would have eventually forced them to do through draconian regulation, penalties and rigorous auditing. Telecom have done the tax payer a favour!

Telecom doing the public a favour now??! I have seen the receiving end of a charity being shafted by Telecom and polite "we'll make it better" phone calls offering the same monopolistic contracts don't gain my favour. But then-again, I would RFID-tag my dog if the price was right.

It seems to me that Telecom publically stating they will, on their own accord, better resell network capacity is 99% a PR gesture. Considering we can already get UBS, are we really closer to IPv6 connections, fibre to the home and triple-play? I hope so.

Ethernet is used in most Internet Exchanges and I would like to see Telecom use that more and open-up access to their sites. Not just sell UBS with a different business model for the same old network.




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Juha
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  Reply # 40014 28-Jun-2006 20:27
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Jama: More like under pressure from a wave of the big Labour stick...'you will be fined $1M if you don't conform...'

Nice, if I was being threatened with a $1M fine I think I would voluntarily microchip my dog... I mean separate the business.

Just think of all the tax payers money Telecom have just saved by voluntarily doing something that Labour would have eventually forced them to do through draconian regulation, penalties and rigorous auditing. Telecom have done the tax payer a favour!


I'm back from the annual telecommunications conference here in Auckland, and would suggest that you check out the experience of BT Openreach before posting soggy middle management stuff like the above - it's a good, positive story, one where everyone seems to have benefited from the incumbent to its wholesale partners to consumers.







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  Reply # 40022 28-Jun-2006 22:29
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Juha - did I imply that it was a negative move? Not at all. But the fact remains when you are walking the plank you either jump or wait to be pushed. Telecom have jumped.




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